energy imbalance market · 07.05.2013 · implementing energy imbalance market (eim) page 3 •no...

Energy Imbalance Market Design Straw Proposal

Lorenzo Kristov Principal, Market & Infrastructure Policy IEPR Workshop California Energy Commission May 7, 2013

EIM stakeholder process proceeds in parallel with PacifiCorp implementation

Implementation agreement

System testing market simulation

2013 2014

FERC review Implementation work

filing

FERC review

Go live

tariff language

Process Merger

board authorization

FERC acceptance

filing Board authorization

FERC acceptance

EIM stakeholder process

March 2012, CAISO proposed a scalable approach for implementing Energy Imbalance Market (EIM)

• No critical mass required – each participant can enter EIM when ready

• Preserves participants’ autonomy and current practices

– Balancing authorities balance and provide their own ancillary services

– Balancing authorities can trade bilaterally

– Participants retain all physical scheduling rights

– Flexible modes of participation are available

BAA 1

BAA 2

BAA 3

CAISO proposed a scalable approach for implementing Energy Imbalance Market (EIM)

BAAs

network modeling

transmission monitoring

bidding/self-scheduling

intra-hour dispatch

settlements

Energy Imbalance Market Definitions

EIM Entity is a balancing authority area that is enabling EIM to occur in their area. By enabling EIM, load and generation imbalances within the balancing authority will settle through the EIM.

EIM Participant is a resource within the EIM Entity

represented by a Scheduling Coordinator that has voluntarily elected to economically participate in the EIM.

Process Overview Visual

Full Network Model

Resource Master File


Full Network Model

Resource Master File

EIM Entity Base Schedule


Minimum Shift

Optimization

Load Forecast

Variable Energy Forecast

Transmission Outages

Generation Outages

Dynamic Contingencies

Base Schedule

Fixed Net Scheduled Interchange


Minimum Shift

Optimization Adjusted Base Schedule


EIM 15-Minute

Interval

Load Forecast



Generation Outages


Adjusted Base Schedule

Economic Bids


EIM 15-Minute

Interval

Awarded 15-Minute Schedule


EIM 5-Minute Interval

Load Forecast



Generation Outages


Awarded 15-Minute Schedule

Economic Bids


EIM 5-Minute Interval

Dispatch Instructions


EIM Settlement

Adjusted Base Schedule

15-Minute Schedule

5-Minute Dispatch

Meter

SC1 Statement

SC2 Statement

SC3 Statement

SC4 Statement

SCx Statement

EIM Administrative Costs

• Cost effective for October 2014-December 2014 • CAISO GMC and Cost of Service Study will be updated

for the rates starting 2015 • Startup costs equal $0.03 times the total annual energy

usage • Administrative rate of $0.19 per MWh volume as

calculated by: – Generation = MAX (5% Gross Generation, Generation

Imbalance Energy: 5-minute vs. 15-minute) – Load = MAX (5% Gross Load, Load Imbalance Energy: 5-minute

vs. 15-minute)

Process for New EIM Entities

• Encourage interested parties to engage as early as possible – For 2014, assessment based upon system complexity and timing

of commitment

• Anticipate future implementations will occur on an annual commitment cycle with 12-18 month lead time – Implementation requires significant network modeling changes

– Must align with CAISO spring and fall software release cycle

• New entrants pay start up fee ($0.03 per MWh Demand) – Payment will be established through implementation agreement

filed with FERC

• Welcome to the CAISO

• Introduction to CAISO Markets

• Market Transactions

• EIM specific training is under development

The ISO offers comprehensive training programs

Training calendar - http://www.caiso.com/participate/Pages/Training/default.aspx Contact us - [email protected]

http://www.caiso.com/participate/Pages/Training/default.aspx

mailto:[email protected]

energy imbalance market · 07.05.2013 · implementing energy imbalance market (eim) page 3 •no...

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